The following data were taken from Netflix, Inc.’s 2017 annual report. All dollar amounts are in millions.

Required

a. For each year, compute Netflix’s debt-to-assets ratio, return-on-assets ratio, and return-on-equity ratio. You will need to compute total liabilities.

b. Did the company’s level of financial risk increase or decrease from 2016 to 2017?

c. In which year did the company appear to manage its assets most efficiently?

d. Do the preceding ratios support the concept of financial leverage? Explain.

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Fiscal Years Ending December 31, 2017 December 31, 2016 $13,587 Total assets Total liabilities Stockholders' equity $19,013 3,582 2,680 Net income 559 187